Gold Rallies As Stocks Suffer Worst Day Of 2013

Following Europe's worst day in months, the US stock markets saw the biggest drop of 2013 today. For those shunning the brief period, aside from 12/28 swings, this is the worst drop in the S&P 500 futures since early November on a relatively high volume day. EUR's weakness was a major driver (just as it was on the way up) jawboned by various CEOs and leaders and pressured down to almost a 1.34 handle (down over 1% against the USD as JPY gained 0.6% against the USD). Treasury yields clattered lower - to Friday's lows - and credit markets remained much less exuberant (as stocks played catch-down). Gold was relatively bid even as the USD gained, testing up to $1675. Homebuilders continue to slip lower and with AAPL's ongoing demise, there was no OPEX/month-end pump to save Tech and implicitly the rest of the market. HY Bond ETFs and synthetics remain weak but selling is thin in bond-land - it seems everyone knows that the cash market can't stand a herd heading for the exit all at once.VIX jumped a considerable 1.75 vols to 14.65% - its highest close of the year.

It isn't much - a 1.35% drop from Friday's highs - but its the biggest PLUNGE since the year began in an inexorable rally in stocks... realized vol picked up too

I have been thinking about this a lot. Are not both of the following statements true?:

1. The Fed and the US government will do anything and everything (and I mean that in the strongest literal sense) to prop up the stock market. Otherwise, pension funds, public and private (but especially public) are utterly bankrupt overnight. Obviously, anything and everything includes (at a minimum) printing money and giving it to others to buy stocks, if necessary. There are even some on this website who have made a compelling case that such is already being done.

2. The Fed and the US government are actively undertaking debasement of the dollar to monetize debt and to keep the system from outright imploding quickly. Again, I have read enough articles and commentary here that I am persuaded that this has already begun, and, further, that this policy will be pursued until the very end.

I am aware that there is what appears to be a disconnect between the economy and the market; viz., the market no longer reflects the underlying economy or fundamentals of any particular company or sector, but instead is being manipulated to enrich certain individuals, prevent utter pension and system collapse, and to give the appearance (via television sound bite talking points) of normalcy or better.

Nevertheless, given the certainty of the two policies mentioned above, is it not impossible that the market will decline in any significant manner (at least nominally), and likely will provide growth commensurate with real inflation for some period of time (which may well prove to be longer than my remaining days here on Earth)?

Really, it seems like the big questions are:

1. How long? When?

2. What will prove the harbinger of real decline?

3. Will manipulation and support include all stocks (including Facebook, Netlix, Amazon, and their ilk) or just some? How to identify those that will enjoy the most support the longest?

The sharp reversal in the stock market today, the first trading day after the DJIA closed above the psychologically important 14K mark, is an extremely ominous development IMHO. War or a like geopolitical crisis may come next:

Not when the govt is actively suppressing it. Who would have ever guessed the day would come when the government actively manipulated the VOLATILITY INDEX as a perception mgmt/propaganda tool? We've sure come a long way in the sophistication of the propaganda since the '1940s and '1950s.

Not to worry. The metals, namely silver, will rocket very shortly (on any kind of sustained equity pullback) and the GSR will destroy the DXY (GSR leads and predicts DX)

I see HS n NAS DX USH3 GSR GBPCHF USDCHF

USDNOK already close to low lows USDSEK also.. Its all on the way dont worry and every asset is in final stages of major pattern completion. Manipulatiors will lose.. and drag many down with them unfortunatly.

Of course, physical only. Although I expect the 'price' to continue to fall as the amount of physical metal available in the market drops. I've decided the best signal to watch is the premium at my local coin shop. Once his supply starts getting constrained he presumably won't be willing to sell at the Comex price anymore. That will be the tell that the game's almost done for the paper market.

Looks like CNBC couldn't even get the anomaly correct (they must miss Darren Rovell). The Super Bowl indicator for the stock market is not meaningful this year. Historically, the forecast of a down stock market for the year only applied if one of the original AFL teams won the Super Bowl. 49ers and Ravens (formely the Cleveland Browns) are both original NFL teams.

You are only looking at the raw superbowl data. The superbowl is played in the winter, so after the seasonal adjustment, the niners won by a point, just as I predicted. There are Mean Joe Green shoots everywhere, and we are approaching the season of recovery. If one doesn't have a PHd in footballnomics (or closely related coachology) one might not be sufficiently prepared to comment on any of this, either.

Cheesy ~ if you look real hard... francis_sawyer does his best, FREE OF CHARGE, to help people make money every day...

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Besides suggesting [all documented on ZH]:

- taking the Ravens (+400) vs. the Broncos

- taking the Ravens (+400) vs. the Patriots

- taking the Ravens (+175) vs. the 49ers

[a PARLAY that would have netted you out a 28-1 payout]...

These weren't just whimsical picks... I went into DETAIL as to why the "lines" were incorrect... I probably wrote a whole page on the Denver game... & most recently, I gave you the proper VIEW on the SuperBowl

Since you put it in that context F_S>>> +1. When you bring up the Hebrews it is not anti-Semitic in tone so much as it is fact and I think that mere mention of the word "Jew" confuses some people who then go into pre-programmed knee jerk reaction mode. For example, I don't think we should give Isreal one red cent in foreign aid. Cut them off. That's not anti-Semitic either, it's just good financial sense. And if anyone out there in ZH land thinks AIPAC isn't operating on this board.....

Did you have a comment deleted earlier today F_S? You posted a link on another thread but I couldn't find anything that you said that was out of line but perhaps you did cross the line?

I calculate that half the VOLUME of my comments relating to Jews come about because anytime ANYONE dangles something like out there, everybody goes stark raving mad...

The ADL has gone to such extreme lengths to silence everyone on the mere mention of the subject [for 'paranoia' or whatever reason], that you have to go about EXPLAINING YOURSELF 8 ways from Wednesday in order for your comment to appear logical in context...

IMO ~ In aggregate, it's a behaviour that breeds more suspicion & contempt than it does TRUTH... But that's THEIR problem...

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I don't know if any of my comments were deleted... I really wouldn't care one way or another... 'Silencing' people [in the history of the world], never ever held a candle [IN THE LONG RUN], to people who spoke the TRUTH...

@F_S. I agree that the truth should not be run over for the sake of being politically correct. You know that you are getting to the heart of the matter when you start pissing people off. I see what it is that you are OBSERVING and commenting on which is not hate speech the way I interpret it. All I am saying is that folks need to stop and look at what it is that you are OBSERVING.

Analyse the data folks and shitcan the "Wo, is me because I am a Jew." meme that has been installed in your heads. Over 50 million people died in WWII and over 20 million Russians took a dirt nap. Yet, it's OK to sit and rip the shit out of the Russians still to this day? I am inclined to agree with CD's first article that perhaps we should look at what we think we know to determine if we actually know something or are regurgitating political phlegm.

It's a hard subject for people to sink their teeth into [because it takes a keen mind to distinguish the difference between somebody NOT saying "Exterminate Them" & INSTEAD saying "I'm going to put up a fight if you try & exterminate me"]...

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To give you an example... Every spring I have a fight with BORER BEES [which are a pain in the ass because I have an almost 'Swiss Family Robinson-esque' decking system]... Yet at the same time ~ they're my main source of fruit & plant pollinators...

I agree F_S. You seem to have a practical understanding of the world around you through observation as well as a practical background in agronomics. So do I. As for the borer bees, I understand the give and take as it is economics. Have you ever thought about honeybees as an alternate pollinator? Or would they interbreed and create some issue? See, this is what so many people do not understand, i.e. causal relationships.

So it is not for me, or anyone else including a .gov agency that lives 1000 miles from your place, to tell you what to do to solve the bee issue but rather for you to determine the best course of action. I have my concerns about fipronil and honeybee Colony Collapse Disorder as I am pretty sure that the cause of CCD is extremely excessive fipronil use by homeowners since BASF started selling it to everyone, their brother and Wal-mart. I used to refuse to sell fipronil to homeowners. Fipronil is awesome of used properly but to let it into the hands of the average mortgaged to the hilt "homeowner" is not a good idea IMO.

Hmm. Well, then ... you might want to affix the propeller even more firmly to your crown, and make sure it's spinning 'directionally correct', so's you don't miss the big rebound tomorr-y.

As for me, I just hope the dorks at Direxion 10-1 reverse split TZA soon -- even on a per share basis the paltry $11 stock price makes day-trades riskier than they need to be, today's juicy little run notwithstanding. SSD or QID don't quite provide the same pop. Given these things are (allegedly) designed for day trades, they should never let it drop below 25, to keep us bears happily shitting in the woods (although I guess we non-holders don't pay any fees, do we?)

5% - 10% pullback coming for equity here. Then as Europe burns in the hearth of technocratic governments the Debt Cieling will spark new rumors of debt default in the US.

But we know how the can will be kicked - they will print more currency, causing everything to increase in price as the fiat devalues.

Soon inflation will not be able to be masked by short positions on oil by JPM. Soon the real costs will rise and a wrench will be throw into the mouth of the Fiat Ponzi. Soon prices for everyday goods will make GDP negative and expose the system for what it is: total fraud.

yup. they are looking for upward movement overall. this is how wealth is made. the market will go higher. plus people are so fucking dumb, they'll never complain about $5-$8 bread as long as it appears like their 401k is "making them money"

I'd be careful, this could be a bear trap. See what Asia does, they go down over 2% across the board, Europe opens 2% gap down, EUR tanks more (on corruption in the Italy, Spain allegations, the Germans are going to love that). We might have a solid sell off building, 1% sell offs on US markets are nothing with crazy money printers lurking.

30yr bond tanking on Friday was a good indication that the US bond markets could be under strain despite QEforever. We could have a huge wipe-out coming, that may stay wiped for a while.

HK is selling hard like the good old days (2012 before July and then after CB madness), DXY has slight bids, Futures are bid. Market could be trying to correct, with POMO expectations securing bids on futures - a short trade looks perilous at this point.

Theories aside the world is sliding toward collapse and gold/silver are the only refuge. The only issue is how long it will take how many people to realize this and act. At that point those who already own physical gold/silver will face a difficult decision - how to realize the value of their assets without exposing themselves to risk.